The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
FINAL CHANCE TO REGISTER FOR URBANITY-25 JOIN MORE THAN 550 ALREADY ATTENDING
LAST CHANCE TO REGISTER FOR URBANITY 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
Editorial DeskFri 25 Feb 22

ASX Plunges in Worst Day Since GFC

d3d9a062-0e6e-439d-acd4-2cddcb07057a

Australian shares lost more than $140 billion in the worst day of trade since the global financial crisis with the fallout from COVID-19 and plunging oil prices hitting the market.

The ASX 200 tumbled 455.6 points, 7.3 per cent—from 6216.20 at the previous close to 5,760.6 by the end of the day.

Australian real estate investment trusts dropped 4.78 per cent to 1,507.3, while the Australian dollar held steady at around 65 US cents.

Overnight, Wall Street experienced its worst day since 2008 with stocks plunging nearly 8 per cent—forcing a 15-minute halt in trade minutes after the opening bell.

JP Morgan chief economist Sally Auld said the macroeconomic environment was likely to get worse before it gets better.

“Even though the infection rate [in China] is slowing and we are getting evidence that Chinese factories are coming online, the geographic spread of the virus is getting larger.

Speaking to Radio National Drive on Monday, Auld said that the geographic spread of the virus has forced economists to revise down growth forecasts.

“And that process doesn't really end until we get to a point where authorities are comfortable that infection rates have peaked and they can wind back containment measures.”

In the long run A-REITs are expected to fare better than the larger market, according to a note by JP Morgan analysts Richard Jones, Ben Brayshaw and Krzysztof Kaczmarek: Stress-testing for COVID-19.

“As a general rule, we believe the A-REITs are well-positioned to deal with the uncertainty as the majority have low gearing, ample liquidity, secure income and quality assets,” they wrote.

The analysts said that the virus will impact all property types while tenant demand will taper as companies defer occupational decisions during the period of uncertainty.

“We believe retail sales will be hit by falling tourism, corporate travel restrictions and declining consumer sentiment; this could see a further rise in administrations.

“Landlords may have to provide rent relief. Falling consumer sentiment may stall the residential recovery as potential purchasers begin to worry about job security.”

Elsewhere, banks were hard hit—Westpac was down 8.57 per cent, ANZ Bank and NAB dropped 8.45 per cent and Commonwealth Bank was down 6.47 per cent.

Commsec markets analyst James Tao said the Australian market suffered one of the worst daily declines in more than a decade.

“Global markets, which have been concerned over the coronavirus outbreak and the potential fallout for economies around the world, are now dealing with another issue in plunging oil prices,” Tao said.

“Crude prices slumped 30 per cent as major oil producing nations were unable to agree on production cuts.

“Saudi Arabia and Russia are now expected to even ramp up production which will add to the excess supply in the market considering demand expectations have fallen on the coronavirus outbreak.”

Tao said no sector was escaping the sell-off, with only a handful of gold stocks in positive territory as investors leaned towards safe havens.

AUTHOR
Editorial Desk
More articles by this author
ADVERTISEMENT
TOP STORIES
Warren and Mahoney Western Bulldogs Women's Health and Leadership Hub HERO
Exclusive

Beyond the Boys’ Club: Inclusive Architecture Disrupting Sporting Precincts

Leon Della Bosca
7 Min
Exclusive

Inside the $10m Heritage Refit of Sydney’s $25,000-a-Year Members’ Club

Taryn Paris
4 Min
Kurraba Point 93 Kurraba Road TUD PLUS
Residential

Council Over Court: How HFO Won Rare North Sydney Approval

Vanessa Croll
7 Min
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
View All >
An aerial view of Ipswich, whose suburb Springfield Lakes, had the highest number of house sales for Queensland in Q2, 2025.
Residential

Ipswich Suburb Leads Queensland House Sales

Marisa Wikramanayake
Development

Zen Group’s West End Towers Greenlit

Taryn Paris
Warren and Mahoney Western Bulldogs Women's Health and Leadership Hub HERO
Exclusive

Beyond the Boys’ Club: Inclusive Architecture Disrupting Sporting Precincts

Leon Della Bosca
Warren and Mahoney’s Western Bulldogs Women’s Health and Leadership Hub proves that even modest budgets can yield consid…
LATEST
An aerial view of Ipswich, whose suburb Springfield Lakes, had the highest number of house sales for Queensland in Q2, 2025.
Residential

Ipswich Suburb Leads Queensland House Sales

Marisa Wikramanayake
5 Min
Development

Zen Group’s West End Towers Greenlit

Taryn Paris
2 Min
Warren and Mahoney Western Bulldogs Women's Health and Leadership Hub HERO
Exclusive

Beyond the Boys’ Club: Inclusive Architecture Disrupting Sporting Precincts

Leon Della Bosca
7 Min
Goldfields Kyneton Central Edgecombe Road precinct rendering
Development

Goldfields Forges Ahead on $150m Kyneton Central Hub

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/-asx-worst-day-of-trade-since-gfc-